A new round of rare earth industry consolidation will lift Storm

Two days A Share Index slumped all the way, investors can not help but feel dejected. However, if the price of rare earth Chouchou trend in recent years, A-share investors or can seek some comfort. Last week, dysprosium oxide, praseodymium neodymium metal tax price of 120 million / ton, 350,000 / ton, the price just two years ago the earth was rushed to 14.8 million / tons, 200 million / ton.

However, the recent trend of rare earth prices have bottomed out, whether the weight was "bull phase" remains to be seen.

"Bitterness" seems to be coming to an end

Rare earth industry is looming dawn. Last week, the rare earth prices "Xianyihouyang" sell bottomed out, the severity of rare earth oxide prices were up 0.55% and 0.24%.

"There is no price has fallen down." One trader told reporters earth.

Currently dysprosium oxide, praseodymium neodymium metal tax price of 120 million / ton, 350,000 / ton, in the second quarter of 2011 these two rare earth prices have rocketed to the highest offer was 14.8 million / tons, 200 million / ton . In just two years time, rare earth prices to be "Tongzhan."

The trader explained that early in 2010 the price of dysprosium oxide is 70-80 million / ton, the price is based on the cost price of anti-mine launch, had not yet received resource tax. Theoretically resource tax base is the price for 15%, the current count resource tax, dysprosium oxide is probably the reserve price on 1000000 / ton.

There are indications that the rare earth industry is about to set off a new round of consolidation storm, but also directly stimulate bottom prices rise. Some media said that this year's May 13 letter to the Ministry day laborers opened a closed-door meeting, the rare earth industry, large enterprises and related departments were in attendance, mainly to discuss fight against illegal exploitation of illegal work program. Just last week, the market is more outgoing, "Guangdong-Jiangxi border will jointly crackdown illegal mining of rare earth" message.

Careful researchers found last week has just begun, and business-to-market outlook is not optimistic views, rare earth prices relatively stable, praseodymium neodymium offer also tends to disadvantaged areas, metal praseodymium neodymium price remained at 320,000 yuan / ton, the market turnover relatively weak. But until Wednesday, Ganzhou region seized private message mines are known industry-wide, the majority of rare earth products, prices began to rise, the business mentality reverse.

The traders also reflect the recent downstream automotive, electronics and air conditioning usage increases, the demand for rare earth obviously promote "the current exercise alone 1-3 months of this year compared to the frequency is high, essentially zero before the inquiry. "

Many market participants judge the current situation, rare earth prices will remain short-term upward trend.

Vital to private mining tax receipt

As for the rare earth prices could reverse this out of the market, interview, insiders generally wary.

Acquaintance Shanghai researcher pointed out that the most important thing is to look at whether the national policy force.

The face of "rare earth bear", leading enterprises are not without "protest" over. By the end of 2012, in order to boost rare earth prices to Baotou Steel Rare Earth, Minmetals central enterprises based collective "cut price", neodymium oxide, praseodymium price was $ 300,000 from the end of October / ton pick-up at the end of nearly 400,000 yuan / ton . But early in 2013, rare earth prices continue to fall, especially in March announced the re-start after the Baotou Rare Earth, "cut-price" ended in failure. The reason, in addition to weak downstream demand in 2012, the central enterprises "cut price" tide stimulate private mining excessive digging a headache.

Private mining rare earth ore excessive digging in the end how rampant? Informed sources told reporters that the country now operating rare earth mine company has more than 100, but less than 100 rare earth mining permits in most provinces and even a mining permit at all. And in the rare earth rich in resources, with mining permits more Jiangxi, Guangdong, the Ministry for the two provinces mining quota will more than 10,000 tons / year, while the actual mining amounted to 60,000 tons / year. "These mines from mined not with votes, with no votes production and export with no ticket, no tariffs, so there is no way to compete with the formal channels, which also causes the current transaction aside regular price manufacturers and foreigners, directly asked their acceptance rates bottom line. could do it, can not do even. "

Admittedly, the current state of the private mining hit badly, "private mine owners everywhere, catch up on the jail." But the worry that the vast majority of private mining in the mountains there, the government is difficult to combat, are "people do not give officials do not study. " Moreover, the real fight is not simply arrest people, should be the exclusive control of rare stamps.

"If we do not do this, then the entire industry would be difficult to get better." He added.

WTO against the other side

Rare sword hanging litigation, but also to future price movements highly variable.

March 13, 2012, the European Union, the United States and Japan to the WTO on China rare earth, tungsten, molybdenum export management measures of the "request for consultations." Three also said the appeal, China on 17 kinds of rare earths and tungsten, molybdenum and other metals export quotas and export taxes and other restrictive measures, in violation of the relevant provisions of the WTO.

About raw materials in accordance with WTO antitrust litigation process, the longest in two years the litigation results will hammer. Reporters learned that the end result or will come out, the industry generally believe that the probability of losing a large rare earth litigation. This also means that state on rare earth quotas, tariffs and other regulatory instruments are canceled.

On the one hand, the state clearly the formation of rare earth large group, asked the central enterprises to accelerate the pace of integration, in order to export quotas ahead of the layout; hand, with rare earth prices over the past year, "Hardships", the negative effects of losing is weakening.

Informed sources said the foregoing, in the past the upstream price inflation hurt demand, many Japanese companies began to recycle rare earth materials, or even reduce even without dysprosium and other materials. At present, because of smuggling serious overseas rare earth prices lower than domestic prices. If in the future abolition of tariffs, equivalent to the domestic export prices, smuggling less attractive will cause the body decreases, in fact conducive to earth prices.


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